The WACC of MediaX Corp (MDAW) is 11.2%.
Range | Selected | |
Cost of equity | 1248.5% - 1839.8% | 1544.15% |
Tax rate | 0.0% - 0.0% | 0% |
Cost of debt | 7.0% - 8.6% | 7.8% |
WACC | 9.7% - 12.7% | 11.2% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 270.57 | 327.67 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 1248.5% | 1839.8% |
Tax rate | 0.0% | 0.0% |
Debt/Equity ratio | 451.39 | 451.39 |
Cost of debt | 7.0% | 8.6% |
After-tax WACC | 9.7% | 12.7% |
Selected WACC | 11.2% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
MDAW | MediaX Corp | 451.39 | -52.72 | -0.12 |
BIMT | Bitmis Corp | 0.21 | 1.79 | 1.47 |
CXC.CN | CMX Gold and Silver Corp | 0.08 | 0.26 | 0.25 |
FRTG | Frontera Group Inc | 3875.97 | -0.37 | 0 |
MSYN | Ms Young Adventure Enterprise Inc | 0.01 | 1.57 | 1.55 |
PNHT | Panamera Healthcare Corp | 0 | 1.08 | 1.08 |
TASK.X.CN | Fasttask Technologies Inc | 0.11 | 0.91 | 0.82 |
Low | High | |
Unlevered beta | 0.48 | 0.98 |
Relevered beta | 403.34 | 488.57 |
Adjusted relevered beta | 270.57 | 327.67 |
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for MDAW:
cost_of_equity (1,544.15%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (270.57) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.